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Tax and rebates for health insurance

Find out how the Australian Government makes private health insurance more affordable.

What is the Australian Government Rebate on private health insurance?

The rebate is an Australian Government initiative that helps make health insurance more affordable. It’s a sum of money you can get back at tax time or apply to your premium to make it cheaper. The rebate applies to hospital, extras and urgent ambulance insurance.

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How do I get the rebate?

If you meet the Government’s eligibility criteria, you can access the rebate by purchasing private health insurance.

You can request your health fund to apply the rebate to your premium up front (making the cost of your health insurance immediately cheaper), or you can get it back as a lump sum when you lodge your tax return.

Neither way is better or will give you back a larger amount - it’s just a matter of preference.

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and my taxable annual income is:

Your estimated rebate is 0.000%

This calculator is a guide only. You should speak to a financial advisor who will be able to take into account your income and personal situation, including any changes that occur during a tax year.

Income thresholds

Your rebate tier depends on your age and taxable income. The less you earn, the greater your refund. For a family with at least two children, the thresholds are increased by $1,500 for each child after the first.

Income thresholds 1 July 2025 - 30 June 2026

Base TierTier 1Tier 2Tier 3
Singles

$101,000 or less

$101,001 – $118,000

$118,001 – $158,000

$158,001 or more

Families

$202,000 or less

$202,001 – $236,000

$236,001 – $316,000

$316,001 or more

Rebate tiers

Your rebate tier is determined by your income threshold (refer to table above). The Australian Government adjusts the rebate tiers on 1 April every year. Find out more about how the rebate works on the ATO's website.

Base TierTier 1Tier 2Tier 3
< Age 65

24.288%

16.192%

8.095%

0%

Age 65 - 69

28.337%

20.240%

12.143%

0%

Age 70+

32.385%

24.288%

16.192%

0%

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The easiest way to update your rebate tier is by using the HBF App. Just open the app and select ‘Edit personal details’ from the home screen. You can also log into myHBF, and in the ‘My Details' menu click on ‘My rebate details’. Alternatively, you can call us, email us at memberservices@hbf.com.au, or visit your local branch and we will be able to help you out.

If you pay the lifetime health cover (LHC) loading, you're still eligible for the rebate. However, you'll only get a rebate on the base premium of your hospital insurance and not the LHC loading component.